Nowadays we all know that a console needs to offer more than gaming in order to take its place at the center of your living room. Even the Wii offered internet browsing and Netflix, with the Wii U set to follow suit, and the PS3 and Xbox 360 catering for every kind of multi-media desire you may have.

The latest in the wide range of available media options for Xbox owners will come in the shape of Xbox music, which was announced for the first time during E3. Although up until now not many details of the service have been shared, industry insiders have furnished business website Bloomberg with some details.

According to the site’s sources, a Spotify-type streaming service as well as the ability to download and store music in a similar way to iTunes will be offered to subscribers. Microsoft is allegedly in talks with various record companies, hoping to launch Xbox Music at some point later this year.

Although their previous effort in the area, Zune, was widely seen as a failure, Microsoft hope to gain the backing necessary to make Xbox Music a real alternative to iTunes, for gamers who are happy to lay down the subscription fee. What do you guys think? Is there enough room in the market to support multiple music providers? I’m personally happy with iTunes and the Vidzone PS3 application for free music videos through my console and have never been tempted by the likes of Music Unlimited and I can’t see Xbox Music changing my mind.